While devices that we can see, feel, and hear get much of the attention, it's often software that allows these physical manifestations of tech to make magic. Similarly, in automotive it's the hardware—or "sheet metal," in industry parlance—that gets attention and turns heads. After all, software can't compete with the sexy lines of, say, the new Chevrolet Stingray, any more than it can compete with the allure of the latest sleek smartphone or tablet.

But while the importance of software is generally acknowledged in the tech world, the auto industry is still largely stuck in a "parts" mindset—even when it comes to infotainment. "The traditional model in automotive, although we do see this changing, is that the infotainment head unit is treated like an AM/FM cassette deck," said Elliot Garbus, vice president and general manager of the Automotive Solutions Division at Intel.

This needs to shift, and it is, albeit slowly. But change in the auto industry moves glacially due to product lead times that stretch years, and also for reliability and cultural reasons. But issues ranging from kludgey infotainment systems to massive recalls, as well as prodding by the tech industry and consumer, are causing automakers to move faster. And also move from a hardware to software mentality.

For example, Ford's Sync system was not only a watershed moment for software in the car, but also showed how an innovative infotainment system could drive sales. The Microsoft-developed system introduced a key advantage for Ford as well as for car buyers: software upgrades. This meant that an infotainment system was no longer frozen in time once it left the factory, as Ford periodically offered added features to not only new, but also existing cars with the Sync system through USB-based software updates—a first in the auto industry.

While Sync was introduced seven years ago, similar infotainment updates haven't become as widespread. (And even several software updates haven't helped Ford overcome the faux pas of following up Sync with MyFord Touch.) And despite the increase in onboard connectivity in vehicles—excluding Tesla—most automaker still don't offer routine over-the-air (OTA) updates.

"There's a cultural transformation that isn't evenly under way across the auto industry," Garbus said. "There's still a mentality that's used to dealing with [piecemeal] parts—an AM/FM radio mindset. But we are certainly having this dialogue with different automakers."

Besides allowing automakers to better keep pace with the tech world and keep car buyers happy, another benefit of moving to a more of a software-based model is lower cost, Garbus added. "We see an opportunity to not only pull out about a year of development time, but also cost reductions of up to 50 percent," he said of Intel's next generation of in-car processors. "We see this as a way to not only accelerate time to market, but also increase software reuse from generation to generation, as you start to think of the automobile more as platform."

And as with other connected computing platforms, this should also make cars more easily and affordably updated, which is particularly important in the current environment of unprecedented recalls. "If we look at the number of recalls that are going on now, many of them are software related," Garbus said.

"Historically, the vast majority of recalls have been based on mechanical failure," noted Roger Lanctot, associate director of Global Automotive Practice at Strategy Analytics. "Increasingly what you're reading about is software algorithms that need to be updated in airbags and safety systems." He added that the need for firmware- and software-update capabilities in the car "is a huge challenge," and characterized it as a "massive undertaking" for the auto industry—if still feasible.

One car company is already doing routine OTA updates. "Tesla, above all, has really rattled the industry with the ability to add features to cars in an almost magical fashion," Lanctot added. "That's put immense pressure on car companies to figure this one out and find some way they can provide software updates." And shift from a sheet-metal to software mindset, for that matter.

About the Author

Doug Newcomb is a recognized expert on the subject of car technology within the auto industry and among the automotive and general media, and a frequent speaker at automotive and consumer electronics industry events. Doug began his career in 1988 at the car stereo trade publication Mobile Electronics, before serving as editor of the leading consume... See Full Bio

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